|
on Transport Economics |
| By: | Massimo Anna Alberini (University of Maryland,USA); Massimo Filippini (ETH Zurich, Switzerland); Markus Bareit (ETH Zurich, Switzerland) |
| Abstract: | To correct market failures due to the presence of negative externalities associated with energy consumption, governments have adopted a variety of policies, including taxes, subsidies, regulations and standards, and information-based policies. For example, labels that clearly convey energy consumption rates, associated costs, and emissions of conventional pollutants and CO2, have been devised and used in the last two decades to promote rational decisions, but it is unclear whether labeling schemes have realigned consumer and producer behaviors. In 2003, Switzerland introduced a system of fuel economy labels, based on grades ranging from A to G, where is A best and G is worst, to assist consumers in making decisions that improve the fleet’s fuel economy and lower emissions. We use a dataset documenting all passenger cars approved for sale in Switzerland each year from 2000 to 2011 to answer three key research questions. First, what is the willingness to pay for fuel economy? Second, do Swiss drivers—or Swiss auto importers—appear to do a one-to-one tradeoff between car purchase price and savings on fuel costs over the lifetime of the car? Third, does the label have an additional effect on price, all else the same, above and beyond that of fuel efficiency alone? Hedonic pricing regressions that exploit the variation in fuel economy across make-models, and over time within make-models, suggest that there is a (modest) capitalization of fuel economy into car prices. The Diesel premium, however, exceeds the future fuel cost savings made possible by Diesel cars, even at zero discount rates. An alternate calculation suggests that the fuel economy premium is consistent with a very low discount rate (2.5%). We use matching estimators and a sharp regression discontinuity design (RDD) based on the mechanism used by the Swiss Federal Office of Energy to assign cars to the fuel economy label to see if the label has an independent effect on price, above and beyond that of the fuel economy. The matching estimator indicates that the A-label effect on car price is approximately 5%. The RDD approach estimates the effect to be 6-11%. |
| Keywords: | Fuel economy; CO2 emissions; Passenger vehicles; Hedonic pricing model; Matching Estimator; Regression Discontinuity Design; Fuel efficiency premium; Discounted future fuel costs. |
| JEL: | Q48 Q53 Q54 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:14-190&r=tre |
| By: | Eliasson , Jonas (KTH); Proost, Stef (Katholieke Universiteit Leuven) |
| Abstract: | The paper challenges the existing sustainable transport literature. Most sustainable transport plans focus on the reduction of greenhouse gas emissions in either one region or country and this neglects two handicaps of strong unilateral action. The first is that climate is a global commons problem so a strong binding international climate agreement is unlikely. The second is that a unilateral reduction of oil consumption by a limited number of countries will be partially, or even completely, offset by market responses – in some circumstances, cumulative emissions may even come earlier (the “green paradox”). When a coalition of the willing reduces oil use in the transport sector, this will delay rather than reduce total emissions. This requires rethinking climate policies for the transport sector: what policies remain cost effective in reducing greenhouse gas emissions? |
| Keywords: | Climate change; Sustainable transport; Oil consumption; International negotiation |
| JEL: | R42 R48 |
| Date: | 2014–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2014_002&r=tre |
| By: | Brännlund, Runar (CERE, Umeå University) |
| Abstract: | The objective with this study is to analyze the role of energy taxes for energy efficiency in the Swedish transport sector. In particular we analyze how large share the Swedish energy tax will contribute to the overall Swedish target for energy efficiency set by the EU directive for energy efficiency. To obtain the objective a dynamic demand model for gasoline and diesel is estimated, based on Swedish time series data from 1976 to 2012. The results from the demand model shows that a higher tax on gasoline results in lower gasoline demand, but leads to an increase in diesel consumption, and vice versa. A removal of the energy and CO2 tax, lowering both the gasoline and diesel consumer price, leads to an overall increase in energy use, but also to an increase in the share for diesel in fuel use. Concerning energy savings the simulation results show that the current Swedish energy and CO2 taxes are sufficient for achieving the EU stipulated target, and hence no additional measures has to be taken. |
| Keywords: | energy efficiency; gasoline; diesel; cointegration |
| JEL: | Q41 |
| Date: | 2013–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2013_006&r=tre |
| By: | Eliasson , Jonas (KTH) |
| Abstract: | Congestion pricing was introduced in Stockholm 2006, first as a trial followed by a referendum, and permanently from 2007. Public attitudes to the charges became more negative during the period from the decision to the start of the system. Once the system started, public attitudes became dramatically more positive over the following years, going from 2/3 against the charges to more than 2/3 in favour of the charges. While the traditional explanatory variables self-interest and belief in the charges’ effectiveness strongly affect attitudes at any given point in time, we show that they cannot explain the change in opinion. Moreover, self-reported changes in behaviour and attitudes considerably underestimate actual changes. About 3/4 of the decrease in car trips and more than half of the change in attitudes seem to have gone unnoticed by respondents, ex post. We discuss how the debate and the shift in attitudes can be understood as a public and political reframing of the congestion pricing over time. |
| Keywords: | Congestion pricing; Acceptability; Attitudes |
| JEL: | H23 H54 R41 R48 |
| Date: | 2014–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ctswps:2014_001&r=tre |
| By: | Molenda, Inga; Sieg, Gernot |
| Abstract: | Living downtown has advantages because it allows for a convenient access to a variety of shopping and leisure activities as well as disadvantages due to the difficulties in finding a parking spot when parking capacity is scarce. We formally model the trade-off in a vibrant city district between parking privileges for residents and economic vitality in terms of the product variety offered. We identify situations in which assigning on-street parking spaces to residential parking is a welfare-maximizing policy. Furthermore, we analyze the optimal share of residential parking spaces from the residents perspective only and find that it exceeds the welfare-maximizing share. -- |
| JEL: | R41 R48 D61 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79933&r=tre |
| By: | Jonas Frank (World Bank); Jorge Martinez-Vazquez (International Center for Public Policy. Andrew Young School of Policy Studies, Georgia State University) |
| Abstract: | The subnational dimension of infrastructure emerges as one of the greatest challenges in contemporary public finance policy and management. Given the localized nature of most infrastructures, ensuring its efficient provision represents a challenge for all countries irrespective of their level of centralization or decentralization. This paper introduces the fundamental questions surrounding the provision of infrastructure in decentralized settings and summarizes the findings from a collection of original essays prepared for this volume by a set of worldwide experts on this subject with the objective of advancing our understanding of the interplay between decentralization and infrastructure. More specifically, the paper discusses the extent of infrastructure gaps and the quality of subnational spending; inquires how functional responsibilities, financing and equalization can be designed; discusses sector-specific arrangements; drills down to the key steps of the public investment cycle and management aspects; and analyzes the political economy and corruption challenges that typically accompany decentralized infrastructure projects. The paper also presents avenues for the strengthening of decentralized public investment and infrastructure provision processes, concluding that they need to be country-, sector- and place-specific. While it is clear that institutional arrangements for infrastructure management will vary across countries, in all cases several decision-making steps need to be coordinated across levels of government in order to ensure efficiency in delivery, equity in spending, and accountability over final results. |
| Date: | 2014–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1405&r=tre |
| By: | Coralie Fanget (IAE Grenoble - Institut d'Administration des Entreprises - Grenoble - Université Pierre-Mendès-France - Grenoble II) |
| Abstract: | Une entreprise qui fonde sa stratégie sur la différenciation par le haut se doit de respecter un certain nombre d'engagements permettant de légitimer sa position. En effet, sur un marché concurrentiel, un positionnement haut de gamme doit pouvoir se justifier aux yeux des clients par une offre différenciante. C'est le cas de la société Roche Diagnostics qui a choisi d'apporter un service de qualité à ses clients, notamment lors de la livraison du matériel médical à destination des laboratoires pharmaceutiques. Cependant, cette prestation de service sur mesure demande une certaine organisation et un coût non négligeable pour la société. Tenter de trouver des solutions pour l'optimiser fait partie des missions du service Achats de l'entreprise. C'est également la problématique qui fait l'objet de cette recherche. |
| Keywords: | Optimisation, famille d'achat stratégique, transport, manutention, satisfaction client, valeur ajoutée, optimization, strategic commodity, transportation, handling, customer satisfaction, added value |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:dumas-00933931&r=tre |
| By: | Israel, Danilo C.; Briones, Roehlano M. |
| Abstract: | This study examines "choke points" in the supply chain of two selected commodity groups that are of interest to the ASEAN region; within the HS15 group the study focuses on crude coconut oil (CNO); for HS03 the study covers fish and crustacean, mollusks, and other aquatic invertebrates (HS 03). For CNO, no major choke points have been identified from mill site to export stages; cost and delay factors can be found at the farm to mill stage, namely low farm productivity, poor postharvest practices (leading to low quality of copra), and inefficiencies in marketing to the mill. Meanwhile for fisheries, several choke points have been identified, namely: i) domestic road conditions (quality, vehicle capacity, quantity); ii) interisland shipping (high cost, inadequate service); iii) conditions in some ports (inadequate; a weak link in the cold chain); iv) compliance with SPS regulations; and v) certified laboratories (inadequate number). The study recommends specific types of road investments, competition policy in domestic shipping (both CNO and fisheries), industry restructuring in the case of coconut, and SPS measures in the case of fisheries. |
| Keywords: | infrastructure, Philippines, logistics, connectivity, agriculture supply chain, choke points |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2014-07&r=tre |
| By: | Remi Jedwab; Edward Kerby; Alexander Moradi |
| Abstract: | Little is known about the extent and forces of urban path dependence in developing countries. Railroad construction in colonial Kenya provides a natural experiment to study the emergence and persistence of this spatial equilibrium. Using new data at a fine spatial level over one century shows that colonial railroads causally determined the location of European settlers, which in turn decided the location of the main cities of the country at independence. Railroads declined and settlers left after independence, yet cities persisted. Their early emergence served as a mechanism to coordinate investments in the post-independence period, yielding evidence for how path dependence influences development. |
| Keywords: | Path Dependence; Urbanisation; Transportation; Colonialism |
| JEL: | R11 R12 R40 O18 O33 N97 |
| Date: | 2014 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2014-04&r=tre |
| By: | Anwar Shah (Director of the Centre for Public Economics, Chengdu/Wenjiang, China and advisor/consultant to the World Bank and the Asian Development Bank) |
| Abstract: | During the past three decades, a large number of countries have introduced reforms to decentralize public decision making. Such reforms have proved controversial. Critics of these reforms argue that decentralized provision of infrastructure enhances vulnerability to corruption. Proponents of these reforms counter that corruption arises from lack of people empowerment and decentralization by bringing decision making closer to people shines sunlight on government operations and empowers people to hold government to account and thereby offers potential for combating corruption in the long run. They further state that decentralized provision of infrastructure holds a great promise in upgrading infrastructure to underserviced especially rural areas with local self-government. In theory such decentralization is also expected to improve integrity of such operations especially in the event of local financing. These debates, nevertheless, remain unsettled as empirical evidence on the impact of decentralization on infrastructure provision is scant or non-existent. Empirical work is hampered by a lack of reliable data on the incidence of corruption. This paper presents conceptual underpinnings of the impact of decentralized provision of infrastructure on the incidence of corruption and synthesizes scant available empirical evidence to make a case for further empirical research to document the real world experiences to update our current state of knowledge on this subject. Much work lies ahead to limit our wide zone of ignorance in this area. |
| Date: | 2014–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1418&r=tre |
| By: | Sebastien Pouliot (Center for Agricultural and Rural Development (CARD)); Bruce A. Babcock (Center for Agricultural and Rural Development (CARD)) |
| Abstract: | The Environmental Protection Agency (EPA) proposed in November to reduce 2014 biofuel mandates. One concern expressed by EPA is that it will be difficult, if not impossible, to consume the 2014 target levels of ethanol in the Renewable Fuel Standard (RFS) because of infrastructure issues. Difficulty in meeting ethanol mandates is reflected into increased compliance costs and a measure of compliance cost is the price of the tradable ethanol credit known as a RIN (Renewable Identification Number). The price of RINs represents the gap between the cost of producing another gallon of ethanol and the price of ethanol that is needed to induce consumers to buy another gallon. Compliance with the ethanol mandates falls to owners of oil refineries who must purchase a specified number of RINs per gallon of gasoline produced. We show in previous work that increasing the number of stations that sell E85 decreases the ethanol price discounts needed to induce enough ethanol consumption to meet targets by making the fuel more accessible to consumers. Any reduction in required discounts directly leads to lower RIN prices and hence lower compliance costs. Thus, obligated parties faced with high RIN prices would have a strong incentive to invest in the infrastructure that would facilitate increases in ethanol consumption. As the cost of complying with RFS falls to owners of oil refineries, it is a natural position for them to oppose any further increase in mandated ethanol volumes. One argument that has often been made by the oil industry against increases in ethanol is that compliance costs will be passed on to consumers. This seems like a reasonable argument because this type of cost increase in any economic model will tend to lead to higher gasoline prices, hence higher consumer prices. Our objective in this study is to provide a transparent economic analysis of the impact on consumer fuel prices from increased ethanol mandates. One feature of our analysis is that it accounts for an increase in the consumption of E85, the most likely compliance path that would be taken in 2014 to meet increases in ethanol mandates. Each year, EPA establishes a percentage standard for ethanol by dividing the desired quantity of ethanol by the total anticipated domestic sales of unblended gasoline. Each producer of gasoline has an RVO (Renewable Volume Obligation) that is determined by multiplying the percentage standard by total domestic sales of gasoline. The RVO is met by acquiring RINs. If an obligated party’s sales of gasoline increases, so too does the RVO. This means that an obligated party can reduce the number of RINs that it needs to comply with the RFS by decreasing the volume of gasoline sales. This direct link between the cost of RINs and gasoline sales implies that increases in the cost of RINs reduces the quantity of gasoline that refiners will provide to consumers at any given gasoline price. Our model has separate demand curves for E10 and E85. The two demand curves are related because increases in E85 consumption come at the expense of E10. The model calculates the retail price of E85 that is needed to induce consumers to buy enough ethanol so that the number of RINs generated is adequate to meet oil refineries’ RVO obligations. The obligations are met through increased E85 consumption and reduced E10 consumption. Increased E85 consumption can only occur with a lower retail price of E85. Given E10 and E85 prices, we can calculate the value at wholesale for gasoline and ethanol. It is the difference between the value of ethanol at wholesale and the cost of producing the required quantity of ethanol that determines the RIN price. The compliance cost to oil refineries per gallon of gasoline is the product of the RIN price and the percentage standard. We find two direct effects of a binding ethanol mandate. The first is an increase in the wholesale price of gasoline because positive RIN prices increase the cost of producing gasoline. The second is a decrease in the ethanol price paid by blenders net of the RIN value. The net price of ethanol will decrease to induce consumers to consume enough ethanol to meet the mandate. Because most US consumers buy E10, the lower price of ethanol in the blend offsets at least some portion of the increased gasoline price. In addition to these two direct effects on the price of E10, there exists an indirect effect that works to lower E10 prices. To meet mandates beyond E10 requires an increase in E85 consumption, which results in a decrease in E10 consumption because some owners of flex vehicles switch fuels. The effect of substituting E85 for E10 is a net decrease in gasoline demand, which results in some reduction in wholesale gasoline prices. Whether the net effect of these three market forces results in a net increase or decrease in E10 pump prices requires the development of an economic model to sort out. We developed and calibrated such a model with the purpose of showing how feasible increases in ethanol blending mandates will affect the price of E10 under a range of possible conditions. We find that feasible increases in the ethanol mandate in 2014 will cause a small decline in the price of E10. That is, even though increased mandates increase gasoline prices, the offsetting effects from a decline in ethanol price and movement by motorists to E85 from E10 are enough to result in a net decrease in the price of E10. Our results should reassure those in Congress and the Administration who are worried that following the RFS commitment to expanding the use of renewable fuels will result in sharply higher fuel prices for consumers. There may be sound policy reasons that could justify Congress revisiting the RFS. However, concern about higher pump prices for consumers is not one of them. |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:14-pb18&r=tre |
| By: | Luis Andres (World Bank); Dan Biller (World Bank); Jordan Schwartz (World Bank) |
| Abstract: | This paper proposes an economic logic for underpinning decentralization in the infrastructure sectors. It starts by detailing the definition of the infrastructure gap and the methodologies to calculate it. It provides some global trends for developing countries in terms of the gap and briefly discusses financing possibilities for developing countries to address the gap. Then it turns to the discussion of the link between the infrastructure gap and decentralization, providing a typology infrastructure subsectors and possible jurisdiction of service provision. It briefly discusses the potential for raising local finances for provision and the relationship between poverty and provision. While it is very difficult to provide blanket recommendations on decentralizing the various sectors and respective subcomponents of infrastructure services, the paper offers a set of guidelines to direct policymakers in their decision to decentralize or not. First, decentralization is intrinsically neither good nor bad for infrastructure; its impact depends entirely on the incentives facing the various decision-makers in the decentralization process; second, decentralization is most fruitful when the decision-makers bear the financial and political cost with respect to design, finance, operation and maintenance; and, finally, political leaders are accountable to their constituents for the manner in which they spend tax revenues and how they use and allocate transfers from the central government. |
| Date: | 2014–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1406&r=tre |
| By: | Lo Prete, Mariantonia |
| Abstract: | Cette communication concerne les espaces dans lesquels les dimensions urbaines et portuaires entrent en contact. Nous étudions le cas des villes portuaires méditerranéennes en France et en Italie. La focalisation sur la relation ville-port permet d’observer des phénomènes de rupture qui se déclinent sur tous les plans : spatial, économique, institutionnel et culturel (A. Vigarié, 1979 ; B.S. Hoyle, 2000). Dans une approche comparative, César Ducruet (2004, 2006) a montré par un travail de modélisation des rapports entre l’urbain, le portuaire et le maritime les effets de l’évolution portuaire sur l’espace urbain et sur les populations qui n’acceptent plus de vivre dans un environnement perturbé par l’exploitation des activités portuaires (C. Ducruet, 2005 ; V. Lavaud-Letilleul, 2009). Les espace entre ville et port sont donc générateurs de conflits, notamment sur le plan environnemental. En effet, l’environnement nourrit les conflits d’usage (A. Torre, 2010) et d’aménagement (Ph. Subra, 2008) surtout entre territoires proches (Ph. Subra, 2009). La problématique est donc la suivante : comment et dans quelle mesure les espaces urbains en contact avec le port peuvent-ils être une source de vulnérabilité et d’inégalité urbaine ? C’est par l’analyse des conflits tranchés par le juge, c’est-à-dire des contentieux, que nous essayons d’y répondre. Nous avons ainsi étudié les contentieux environnementaux sur les espaces entre la ville et le port à travers une grille géo-juridique qui permet une analyse quantitative et qualitative des données par le biais de divers paramètres : acteurs publics et privés engagés dans le conflits, enjeux environnementaux, type d’activité ou d’aménagement, zones des conflits, demandes des acteurs, textes juridiques, décisions, orientations des juges, etc. Les résultats de l’analyse montrent d’abord des effets de résistance. On voit nettement, d’une part, la vulnérabilité environnementale de la ville : par exemple, c’est à cause de la construction des terminaux gaziers ou à cause de l’implantation d’ICPE, que la qualité du milieu de vie des populations riveraines est mise en péril. L’analyse montre donc les différents risques environnementaux auxquels la ville est confrontée avec, par exemple, le développement du transport de matières dangereuses ou d’activités industrielles lourdes. D’autre part, l’analyse fait apparaître des inégalités urbaines : par exemple, c’est à cause de la validation d’un ordre de démolition d’habitations situés entre la frontière urbaine et portuaire que des citadins perdent leur logement ou encore, c’est à cause de la validation des arrêtés préfectoraux que certains équipements nuisibles pour la population sont installés dans certaines zones et non dans d’autres. L’analyse montre donc que les espaces entre ville et port sont favorables à la production d’inégalités urbaines dans les zones de frontières non clairement établies et dans les zones les plus soumises au développement économique du port. Mais on voit aussi des effets de résilience. L’analyse montre en effet qu’à travers les décisions et les orientations des juge s’instaurent des processus d’adaptation entre la ville et le port. Les juges motivent et orientent leurs décisions en fonction de la prise en compte des besoins du territoire par exemple en terme de la valorisation du paysage littoral, en empêchant l’autorité portuaire de démolir un bâtiment qui se trouve à l’intérieur du port ayant une forte valeur historique et architecturale, ou en terme de sécurité et de sûreté, en accordant des travaux d’amélioration des vieux terminaux gaziers ou d’autres projets d’aménagement qui valorisent, par exemple, le transport multimodal (E. Gouvernal, 2007). Cela renforce le processus d’adaptation et va dans le sens d’une valorisation de l’urbain – autant d’éléments encourageants pour le futur des ces espaces. |
| Keywords: | Gestion des conflits; Utilisation du sol; Aménagement du territoire; Italie; France; Commerce maritime; Ports; Pollution; Évaluation du risque; Villes; |
| JEL: | L92 Q58 Q53 |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:dau:papers:123456789/12475&r=tre |
| By: | Luiz de Mello (Deputy Chief of Staff of the Secretary-General); Douglas Sutherland (OECD) |
| Abstract: | The need for infrastructure building, replacement and updating is large worldwide and governments - particularly subnational governments - will need to mobilise budgetary resources while simultaneously restoring public finances to sound health and meeting other spending pressures. This paper considers the factors affecting investment in infrastructure (with an emphasis on fixed networks), the specific characteristics of the different financing modalities applicable to subnational governments and highlights the challenges that are specific to subnational governments. In order to rise to the challenge, subnational governments will need to enhance their capacity to raise own revenue, to make the most of intergovernmental grants and transfers, and to mobilise private-sector funds, including by tapping capital markets, where permitted. In order to exploit fully the various financing options, subnational governments in many countries will need to strengthen their technical capacity to design and implement investment projects, as well as manage increasingly complex, multi-year budgets, especially when there is private sector involvement. |
| Date: | 2014–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1409&r=tre |
| By: | Leonardo Romeo (New York University); Paul Smoke (Wagner Graduate School of Public Service) |
| Abstract: | Developing countries face considerable challenges in the design and operation of local infrastructure planning systems in decentralized or decentralizing countries. Many of these are well documented, but the complex political economy environment in which planning evolves has received insufficient attention. The forces driving decentralization and other public sector reforms shape how planning emerges, functions and performs. Local planning involves a range of differentially empowered and variously motivated actors at multiple levels and in diverse ways. The dynamics among them can support or undermine authentic local planning, with potentially significant implications for results. This paper reviews the evolution of local infrastructure planning with a focus on least developed countries, outlining the key expected and observed relationships among decentralization, planning systems and infrastructure development. The main goal is to create greater awareness of political economy issues that could inform the design and management of more effective and pragmatic local infrastructure planning systems. |
| Date: | 2014–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1417&r=tre |
| By: | Müller, Andrea; Heimeshoff, Ulrich |
| Abstract: | This paper provides empirical evidence that Accelerated Vehicle Programs exhibit a positive influence on car registrations using unique aggregate monthly data for 23 OECD countries from 2000 to 2010. The effect is still traceable if dynamic panel data fixed effects methods are used to address the problem of unobserved heterogeneity and controlling for macroeconomic variables like industrial production, interest rate, unemployment rate and gasoline price. Furthermore our analysis reveals that passenger car sales varied considerably before the car scrappage scheme was put in place to fight the 2009 sales crisis. Compared to a simulated counterfactual situation we find a positive overall effect (until autumn 2010) of the recent Accelerated Vehicle Programs for chosen countries: the United States, South Korea, Germany and the United Kingdom. Simulation results further show that timing and duration of the policies seem much more important for its success than the budget allocated to the program. -- |
| JEL: | C33 L62 H25 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79802&r=tre |
| By: | Jason M. Lindo; Peter Siminski; Oleg Yerokhin |
| Abstract: | A large literature has documented significant public health benefits associated with the minimum legal drinking age in the United States, particularly because of the resulting effects on motor vehicle accidents. These benefits form the primary basis for continued efforts to restrict youth access to alcohol. It is important to keep in mind, though, that policymakers have a wide variety of alcohol-control options available to them, and understanding how these policies may complement or substitute for one another can improve policy making moving forward. Towards this end, we propose that investigating the causal effects of the minimum legal drinking age in New South Wales, Australia provides a particularly informative case study, because Australian states are among the world leaders in their efforts against drunk driving. Using an age-based regression-discontinuity design applied to restricted-use data from several sources, we find no evidence that legal access to alcohol has effects on motor vehicle accidents of any type in New South Wales, despite having large effects on drinking and on hospitalizations due to alcohol abuse. |
| JEL: | I18 K32 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19857&r=tre |
| By: | Englmaier, Florian; Schmöller, Arno; Stowasser, Till |
| Abstract: | We examine empirically whether individuals evaluating used cars efficiently aggregate all relevant information on its constituent characteristics. Based on detailed field data on more than 80,000 used car offers in a large online marketplace, we provide evidence for biased information processing. While the precise date of first registration, i.e., its "age", is publicly and prominently stated for each car, we identify an amplified value adjustment for otherwise identical cars at year-count changes. These discontinuities indicate that individuals over-react to the figure displayed in the latter, while underrating the finer information on a car's age as conveyed through the month of first registration. Moreover, we are able to replicate the findings from Lacetera et al (2009) and find discontinuous drops in prices at 10,000km odometer thresholds. While the latter finding, as suggested by Lacetera et al (2009), is consistent with a left-digit bias in the processing of numerical information, the first finding cannot be explained by this. Our findings underline that information-processing heuristics matter also in markets with large stakes and easily observed information -- |
| JEL: | D03 D12 D83 |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc13:79982&r=tre |
| By: | Adrian Beck; Rudolf Kerschbamer; Jianying Qiu; Matthias Sutter |
| Abstract: | Credence goods, such as car repairs or medical services, are characterized by severe informational asymmetries between sellers and consumers, leading to fraud in the form of provision of insufficient service (undertreatment), provision of unnecessary service (overtreatment) and charging too much for a given service (overcharging). Recent experimental research involving a standard (student) subject pool has examined the influence of informational and market conditions on the type and level of fraud. We investigate whether professional car mechanics – as real sellers of credence goods – react in the same way to changes in informational and institutional constraints. While we find qualitatively similar effects in the fraud dimensions of undertreatment and overcharging for both subject pools, car mechanics are significantly more prone to supplying unnecessary services in all conditions, which could be a result of decision heuristics they learned in their professional training. |
| Keywords: | artefactual field experiment, car mechanics, credence goods |
| JEL: | C91 D82 C72 |
| Date: | 2014–01 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2014-02&r=tre |
| By: | Ha T.T. Vu (World Bank); Robert D. Ebel (International Consultant to World Bank) |
| Abstract: | The focus of this paper is on the last set of these questions -- that of the capacity and the practice of decentralized infrastructure monitoring. The experience and practice of low, middle and high income countries alike is considered. The paper is organized as follows: the next section, Section 2, defines how infrastructure is defined for purposes here, and then proceeds to discuss where the monitoring of infrastructure fits into the broader activity of decentralized infrastructure management. Section 3 then lays out some of the “pre-conditions” for effective decentralized monitoring of infrastructure, leading to the conclusion that for many developing countries these pre-conditions are not satisfied and, thus, why in order to make useful statements about decentralized monitoring of infrastructure one turns to specific case studies for lessons learned from current practice. Accordingly, Section 4 focuses on a mix of illustrative country practices on governmental monitoring of infrastructure that serve to reinforce the conventional view that though there are core lessons common to all intergovernmental societies, there is no single “best” approach since each country faces different starting and end points to which they aspire. Section 5 reviews selected non-governmental and civil society role in what the paper labels as decentralized “bottom up” monitoring. Concluding comments are provided in Section 6. |
| Date: | 2014–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1415&r=tre |
| By: | Catherine Gamper (Public Governance and Territorial Development Directorate, OECD); Claire Charbit (Public Governance and Territorial Development Directorate, OECD) |
| Abstract: | The share of public investment spending at sub-national level has been slowly but steadily increasing over the past two decades across OECD countries. Degrees and forms of decentralization in infrastructure vary widely across countries, but all governments share a common objective, that is to mobilize authorities along shared infrastructure policy objectives. This involves managing a complex web of vertical (across levels of government) and horizontal (across sectors and across the same levels of government) interdependencies, which require substantial coordination among actors to ensure policy alignment and quality investments. Asymmetric information, multiple principal-agent relationships and significant differences in capacities across levels of government in financing and implementing infrastructure investments have posed important political economic obstacles to improving the efficiency and effectiveness of public investment outcomes. This paper will look at persisting coordination challenges more closely by using the results of a recent OECD questionnaire and case studies. It will identify remedies OECD and some selected non-OECD countries have found that work to address coordination issues. This paper will demonstrate that ultimately systematic collection and sharing of information is the key to making coordination work. |
| Date: | 2014–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1416&r=tre |
| By: | Roy Bahl (Andrew Young School of Policy Studies, Georgia State University); Richard M. Bird (University of Toronto) |
| Abstract: | This paper reviews the theoretical and practical issues surrounding the decentralization of responsibility for the provision of infrastructure to local governments in low income countries. The focus is on structural rather than management issues. There is plenty of evidence that following the theory can lead to efficient outcomes under decentralization, but also plenty of evidence that the theory and the practice often diverge widely. Seven policy rules that could support a successful decentralization of appropriate infrastructure services are drawn out of this review. |
| Date: | 2013–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1408&r=tre |
| By: | Simon D. Ellis (World Bank); Aurelio Menendez (World Bank) |
| Abstract: | This paper will review the key elements required for effective decentralized implementation of rural roads programs. It will review the range of options available and the evidence for successful implementation where it exists. Section 2 makes the case for the importance of rural roads and sets out the evidence for the socio-economic benefits. Section 3 addresses the responsibilities for implementation and critical importance of having clarity over network ownership. Section 4 highlights the difficulties of finance, particularly for longer term maintenance, and sets out options for improving allocations and the reliability of receipt for those allocations. Section 5 sets out the project cycle from planning, design, implementation, maintenance and subsequent evaluation. Section 6 summarizes the key issues and highlights the main policy considerations. |
| Date: | 2014–01–14 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper1413&r=tre |